CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase. Characters in the case : CB a single graduate Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan. To determine: The areas in the budget for single working person might cut back to make provision of monthly payment of $400 for new automobile. Introduction: Establishment of debit limit: A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider. They are three recommended methods for you to determine the debt limit. Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt. Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment. Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

Question

Want to see the full answer?

Answer 1

Question

Chapter 6, Problem 4FPC

a

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The areas in the budget for single working person might cut back to make provision of monthly payment of $400 for new automobile.

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

b

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The amount in each area can be cut back.

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

c

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The possible alternatives for C about buying new car

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

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Consider the following gasoline sales time series. If needed, round your answers to two decimal digits. Week Sales (1,000s of gallons) 1 17 2 21 3 19 4 23 5 18 6 16 7 20 8 18 9 22 10 20 11 15 12 22 (a) Show the exponential smoothing forecasts using α = 0.1, and α = 0.2. ExponentialSmoothing Week α = 0.1 α = 0.2 13 (b) Applying the MSE measure of forecast accuracy, would you prefer a smoothing constant of α = 0.1 or α = 0.2 for the gasoline sales time series? An smoothing constant provides a more accurate forecast, with an overall MSE of . (c) Are the results the same if you apply MAE as the measure of accuracy? An smoothing constant provides a more accurate forecast, with an overall MAE of . (d) What are the results if MAPE is used? An smoothing constant provides a more accurate forecast, with an overall MAPE of .

After many sunset viewings at SUNY Brockport, Amanda dreams of owning a waterfront home on Lake Ontario. She finds her perfect house listed at $425,000. Leveraging the negotiation skills she developed at school, she persuades the seller to drop the price to $405,000. What would be her annual payment if she opts for a 30-year mortgage from Five Star Bank with an interest rate of 14.95% and no down payment? a- $25,938 b- $26,196 c- $24,500 d- $27,000

Imagine that the SUNY Brockport Student Government Association (SGA) is considering investing in sustainable campus improvements. These improvements include installing solar panels, updating campus lighting to energy-efficient LEDs, and implementing a rainwater collection system for irrigation. The total initial investment required for these projects is $100,000. The projects are expected to generate savings (effectively, the cash inflows in this scenario) of $30,000 in the first year, $40,000 in the second year, $50,000 in the third year, and $60,000 in the fourth year due to reduced energy and maintenance costs. SUNY Brockport’s discount rate is 8%. What is the NPV of the sustainable campus improvements? (rounded) a- $70,213b- $48,729c- $45,865d- $62,040

Answer 2

Question

Chapter 6, Problem 4FPC

a

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The areas in the budget for single working person might cut back to make provision of monthly payment of $400 for new automobile.

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

b

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The amount in each area can be cut back.

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

c

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The possible alternatives for C about buying new car

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 6, Problem 4FPC

a

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The areas in the budget for single working person might cut back to make provision of monthly payment of $400 for new automobile.

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

b

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The amount in each area can be cut back.

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

c

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The possible alternatives for C about buying new car

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 4FPC

a

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The areas in the budget for single working person might cut back to make provision of monthly payment of $400 for new automobile.

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

b

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The amount in each area can be cut back.

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

c

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The possible alternatives for C about buying new car

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 4FPC

a

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The areas in the budget for single working person might cut back to make provision of monthly payment of $400 for new automobile.

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

b

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The amount in each area can be cut back.

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

c

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The possible alternatives for C about buying new car

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

Answer 6

Chapter 6, Problem 4FPC

a

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The areas in the budget for single working person might cut back to make provision of monthly payment of $400 for new automobile.

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

Answer 7

Chapter 6, Problem 4FPC

a

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The areas in the budget for single working person might cut back to make provision of monthly payment of $400 for new automobile.

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

Answer 8

b

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The amount in each area can be cut back.

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

Answer 9

b

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The amount in each area can be cut back.

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

Answer 10

c

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The possible alternatives for C about buying new car

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

Answer 11

c

Summary Introduction

Case summary:CB a graduate, has no debt, she has to decide for purchase of new car on installment of $400 per month, it is required to determine the areas might be required to cut back to make payment of $400, it can be advised that he did not required budgetary provisions for student load and other loans given as he don’t have any debt, and it is further determined that with available disposable income it is not feasible for him to go ahead with new purchase.

Characters in the case : CB a single graduate

Adequate information: CB a fresh graduate with no debt, considering to trade in her old car for new, requiring monthly payment of $400. Looking at his budgetary estimate it is required to determine what areas he need to cut back in his budget to make budgetary provision for his plan, and it is also required to advise him about his plan.

To determine: The possible alternatives for C about buying new car

Introduction:

Establishment of debit limit:A debit limit is the overall maximum credit one should get based on his ability to meet the repayment obligations. The recommended safe debt limit is considered to be 11 to 14 percent debt payment limits as percentage of disposable personal income, the length of time that high debt payment is also important to consider.

They are three recommended methods for you to determine the debt limit.

Continuous-debt method under this method it is evaluated if it is difficult to get out of debt completely every four years, if yes it shows you are heavily dependent on debt.

Debt payments-to-disposable income is a ratio of the debt payment other than mortgage loan versus disposable income, it is based upon the amount of monthly debt repayment.

Debt-to-income method it is based on the ratio of debt to income a ratio of 36 percent or less is desirable.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 6.1 - Prob. 1CC Ch. 6.1 - Prob. 2CC Ch. 6.1 - Prob. 3CC Ch. 6.1 - Prob. 4CC Ch. 6.2 - Distinguish among the continuous debt method,...Ch. 6.2 - Prob. 2CC Ch. 6.2 - Prob. 3CC Ch. 6.2 - Prob. 4CC Ch. 6.3 - Prob. 1CC Ch. 6.3 - Prob. 2CC

Solution Summary: The author explains how CB, a single graduate, decides to trade in her old car for new on installment of 400 per month. The recommended safe debt limit is 11 to 14 percent debt payment limits.

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